Queensland launches inquiry into big four supermarkets over “outrageous prices”

The Queensland government has appointed a supermarket pricing select committee to examine why climbing prices for fresh produce do not correlate with agricultural industry profits and whether consumers are being charged too much.

On Friday, Premier Steven Miles announced the creation of the bipartisan committee, noting the inquiry would look at discrepancies between retail and wholesale and farm gate prices, including different-sized businesses.

The committee inquiry may lead to major reforms to state policies concerning information transparency for producers, including what data will reduce information asymmetry between suppliers and the big supermarkets.

Bundaberg MP Tom Smith will chair the inquiry, which will examine the causes and effects of increased supermarket prices and identify opportunities to increase transparency in the sector.

“In my first speech as premier, I made a commitment to meet the big supermarkets to share the stories from families that the cost at the checkout was far too high and that farmers felt ripped off at the farmgate,” Miles said.

“What those supermarket CEOs had to say simply wasn’t good enough, so I have moved to form this committee.”

The premier decided to proceed with the inquiry following a meeting with the bosses of Woolworths, Coles, Aldi and IGA. The big four supermarkets comprise 80% of Australia’s grocery retail sector.

Smith, whose electorate is made up of one of Queensland’s biggest food bowls, said the government planned to hold big supermarkets to account and ensure all Queenslanders get a fair go.

“Queenslanders don’t think it’s good enough that they’re paying more and more at the checkout while our farmers get less for their produce,” the MP said.

“I’ve heard too many stories from my constituents in Bundaberg of paying outrageous prices for just one bag of groceries.

“I’ve heard too many times how growers feel powerless to speak out against the tactics being used against them by the big retailers.

“It is important that this committee provides Queenslanders the chance to have their say and share their stories of how the big supermarkets’ control on pricing is affecting them,” he said.

The committee’s terms of reference further task the inquiry with considering the variability in supermarket offerings and pricing across the state, particularly in regional Queensland and in remote Aboriginal and Torres Strait Islander communities; long-term trends in profits accruing along the supply chain for perishable produce; the conduct of retailers in negotiations with Queensland producers; and any other reviews or inquiries occurring in Australia.

In January, federal treasurer Jim Chalmers announced the Australian Competition and Consumer Commission will investigate pricing and competition in the supermarket sector to ensure Australians pay a fair price for groceries. That report is due early next year.

Premier Miles urged everyday citizens to share their views with the committee.

“I’d like to encourage all Queenslanders with something to say to come forward.  I am very much looking forward to seeing the committee’s report,” he said.

The committee will comprise three government members, as well as three from the opposition and crossbench. Smith, Joan Pease and Jess Pugh have been named as part of the group with final committee members to be determined within the week.

The inquiry will be able to call for people to give testimony and provide documents. A final report is due to be handed to the Queensland parliament by May 21.

This article was first published by The Mandarin.